Suncor Energy has responded to the Alberta government's plans to implement a new royalty regime for the province.

The government outlined plans to work with Suncor to reach an agreement on a transition plan to the new royalty framework.

Rick George, president and CEO of Suncor, said: Suncor recognizes that the oil sands resource we develop is owned by the people of Alberta, and Albertans have the right to benefit economically through royalties. However, the royalty regime changes proposed by the Alberta government are substantial and could have a significant impact on industry economics. We will need time to study the changes and their potential impact on our business.